Canada Posts First Trade Surplus in a Year on Energy Shipments

Canada posted its first trade surplus
in a year in March, breaking the longest string of deficits in
at least 25 years as exporters shipped more energy and mineral
products abroad.

The surplus of C$24 million ($24 million) followed a
revised shortfall of C$1.25 billion in February, Statistics
Canada said today in Ottawa. Economists surveyed by Bloomberg
forecast a C$700 million deficit in March, based on the median
of 22 forecasts.

Data this week showed Canada’s economy expanded for a
second month in February, putting it on track for the fastest
quarterly expansion since 2011. The Bank of Canada’s monetary
policy report last month predicted economic growth of 2.8
percent next year and 1.5 percent in 2013, led by exports and
business investment which slumped late last year.

Exports rose 5.1 percent to C$40.5 billion in March, led by
a 3.9 percent increase in shipments of energy and a 13.2 percent
gain in sales of mineral products such as steel. Shipments of
motor vehicles and parts jumped 6.1 percent to C$5.78 billion.

The volume of exports surged 5.1 percent and import volumes
rose 0.3 percent, Statistics Canada said. Volume figures adjust
for price changes and can be a better indicator of how trade
contributes to economic growth.

The surplus with the U.S. increased to C$3.82 billion in
March from C$3.18 billion a month earlier. Exports make up about
one-third of Canada’s economy, with about 75 percent of the
shipments going to the U.S.